by The Tea Extracts Market is estimated to be valued at US$ 15.11 Bn or billion in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tea extracts are derived from the Camellia sinensis plant and are widely used in food & beverage, pharmaceuticals and cosmetic industries. Tea extracts contain antioxidants like polyphenols and flavonoids which provide various health benefits such as weight management, reduced inflammation, improved cognitive function and reduced risk of heart disease and cancer. The rising awareness about the health benefits of consuming tea extracts is driving the growth of this market.
Market key trends:
One of the key trends driving growth in the tea extracts market is the rising health consciousness among consumers. Consumers are increasingly looking for food and beverage products with added health benefits. Tea extracts contain high levels of antioxidant compounds like catechins and polyphenols which provide various health advantages. This has increased the demand for tea extracts infused food and beverage products. Additionally, changing lifestyle patterns and rising consumption of ready-to-drink beverages is also fueling the use of tea extracts in the functional beverage industry. Growing demand from the cosmetic industry for anti-aging products containing tea extracts is another factor propelling the market growth.
Porter’s Analysis:
- Threat of new entrants: Low capital requirements for production and growing tea cultivation has led to low threat of new entrants. However, established players dominate distribution channels.
- Bargaining power of buyers: Large buyers such as food and beverage companies have high bargaining power due to their significant demand. They can negotiate on price and quality standards.
- Bargaining power of suppliers: Tea leaf suppliers have moderate power due to availability of substitutes and dominance of buyers. Suppliers need to compete on quality and quantity to sustain.
- Threat of new substitutes: Products such as coffee, fruit juices pose minimal threat as tea extracts have well-established demand and unique health properties that are difficult to substitute.
- Competitive rivalry: Intense competition exists among existing players to cater rising demand and capture market share. Players compete on branding, quality, innovation and expanding their product portfolio.
SWOT Analysis:
- Strengths: Rising health awareness, unique antioxidant and medicinal properties of tea extracts.
- Weaknesses: Seasonal availability of raw materials leads to supply uncertainties. Heavy reliance on climate conditions for tea cultivation.
- Opportunities: Growing demand from food & beverages, pharmaceutical and cosmetic industries. Potential in developed regions of North America and Europe.
- Threats: Price fluctuations of raw materials. Rising trade barriers and regulations can impact international demand.
Key Takeaways:
The Global Tea Extracts Market Growth is expected to witness high, exhibiting CAGR of 43% over the forecast period, due to increasing health consciousness. Tea extracts contain antioxidants that are beneficial for weight management, heart health and skin care.
Regionally, Asia Pacific dominates the global tea extracts market currently. Countries such as India, Sri Lanka and China are the major producers and consumers of tea. However, North America is expected to be the fastest growing market during the forecast period due to rising popularity of herbal extracts in wellness products.
Key players operating in the tea extracts market are AVT Natural, Archer Daniels Midland Company, Blueberry Agro, Cymbio Pharma Pvt Ltd., Harrisons Malayalam Ltd., Indena S.p.A., Martin Bauer Group, Synthite Industries Ltd., Synergy Flavors, Teawolf, Â Martin Bauer Group., and Taiyo International. These players are focused on new product launches, capacity expansion and partnerships to increase their market share in the highly competitive global tea extracts market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
